Financial Analysis: HealthEquity (NASDAQ:HQY) vs. Intelligent Bio Solutions (NASDAQ:INBS)

HealthEquity (NASDAQ:HQY) and Intelligent Bio Solutions (NASDAQ:INBS) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Risk & Volatility

HealthEquity has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Intelligent Bio Solutions has a beta of 4.48, suggesting that its share price is 348% more volatile than the S&P 500.

Profitability

This table compares HealthEquity and Intelligent Bio Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HealthEquity	14.86%	12.94%	8.06%
Intelligent Bio Solutions	-315.33%	-200.68%	-97.31%

Institutional and Insider Ownership

99.6% of HealthEquity shares are held by institutional investors. Comparatively, 33.0% of Intelligent Bio Solutions shares are held by institutional investors. 1.5% of HealthEquity shares are held by insiders. Comparatively, 1.3% of Intelligent Bio Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for HealthEquity and Intelligent Bio Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthEquity	1	2	11	1	2.80
Intelligent Bio Solutions	1	0	0	0	1.00

HealthEquity presently has a consensus price target of $112.00, suggesting a potential upside of 46.42%. Given HealthEquity’s stronger consensus rating and higher probable upside, equities research analysts clearly believe HealthEquity is more favorable than Intelligent Bio Solutions.

Valuation and Earnings

This table compares HealthEquity and Intelligent Bio Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthEquity	$1.29 billion	5.06	$96.70 million	$2.18	35.09
Intelligent Bio Solutions	$3.05 million	2.36	-$10.57 million	($14.82)	-0.30

HealthEquity has higher revenue and earnings than Intelligent Bio Solutions. Intelligent Bio Solutions is trading at a lower price-to-earnings ratio than HealthEquity, indicating that it is currently the more affordable of the two stocks.

Summary

HealthEquity beats Intelligent Bio Solutions on 14 of the 15 factors compared between the two stocks.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.

About Intelligent Bio Solutions

Intelligent Bio Solutions Inc., a medical technology company, developing non-invasive, real-time monitoring, and diagnostic tests for patients and their primary health practitioners. It offers saliva glucose biosensor for diabetes management that measures glucose in saliva. The company also provides intelligent fingerprinting drug screening system, a revolutionizing portable testing through fingerprint sweat analysis, which has the potential for broader applications in additional fields; and biosensor platform for biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. The company was formerly known as GBS Inc. and changed its name to Intelligent Bio Solutions Inc. in October 2022. The company was incorporated in 2016 and is headquartered in New York, New York. Intelligent Bio Solutions Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.